Bank fraud is a serious issue that can quickly ruin a business. However, many small and medium-sized business owners mistakenly think that the federal fraud regulations protect their business accounts just like the regulations that are in place to protect personal bank accounts. The fact is, the federal regulations that exist to protect financial accounts from fraud are only in place providing protection for personal accounts. This leaves your business account out in the cold when any IT security breach occurs, so it’s important to check fraud prevention policies with your bank if you have a business account with them.
Also, there is not very much protection when the source of the fraud is internal, such as employees who have too much access and a company with a worthless “checks and balances” system in place. If you want to keep your business’s bank accounts safe, use the tips here.
Protecting Your Business from External Fraud
In many situations, hackers target email accounts to recover their victim’s bank information. Small and medium business accounts are attractive to cyber criminals because they typically have larger balances than personal accounts. Also, larger corporations have much tighter security, which makes cases of fraud identifiable quickly. This is why hackers target the weakest points — small and medium businesses.
Many business owners rely on old security strategies and tools that are not effective against cyber-attacks and cases of bank fraud, to begin with. This is the first thing that must go. The first step is to work with an IT security team that can help ensure all the latest technology and security software is in place and being used.
Consider Your System Integrity
It is important to equip your computers and other system components with the latest antivirus software and firewalls. This also means that all mobile devices, tablets, and smartphones are equipped with this protection, as well. Ensure that anyone with access to the business accounts only uses the devices that are fully protected.
Set Up Email Alerts
Thanks to modern technology, most banks offer the ability to get real-time notifications when any activity — especially transfers — occur. Having your account set up to send you an email notification each time this activity occurs can help you catch any potential fraud — and stop it — right away. Without these warnings in place, it is often days or even weeks before cases of fraud are spotted.
Device Geofencing and Identification
It is a good idea to also set up the payment system that only allows transactions to take place from registered and recognized devices. Also, setting up a system that is location-aware and that operates in a particular, trusted geographical region, can help to keep cyber criminals out of your business accounts.
Properly Train Your Employees
Hackers can gain entry into your accounts using several different methods, including links that look like they are from a routine email from your financial institution or another company you work with on a regular basis. Make sure that all employees who have access to the accounts understand how to do this safely and without presenting any additional risk to the business.
The Bottom Line
Bank fraud is a serious issue. If a small or medium business owner does not take steps to prevent it from occurring, they may find that their business finances are in the hands of nefarious hackers. The good news is, there are steps that are effective at fighting hackers and keeping them away from your business funds; however, you have to have the right IT security in place.
With the tips here, a quality IT security team, and a bit of common sense, any business owner can ensure that their business is not a victim of bank fraud. In the long run, this provides peace of mind that the money you work hard to earn is not going to fall into the hands of a hacker. Furthermore having your business finances organized by software provided by companies like ProSymmetry, as well as creating a portfolio management plan too, it can help to keep you more protected and aware of any hacking in your system.